Exemplifying the principles of 5S, Yolanda Cawagas and Pejuan Villanueva’s initiative to establish a systematic physical counting and arranging of supplies in Subic EnerZone Corp.’s warehouse has resulted in reduced inventory variance.
The 5S system aims to boost operational efficiency and optimize productivity in the workplace. Parallel to this, the duo’s idea makes recording, distributing, cataloguing and accounting for supplies easier. It has also left a good impression on customer locators and team members.
Having low variance in the audit of materials, or a low difference between actual and system figures, means that the utility is able to record lower losses. Since implementing the system in 2015, the warehousing initiative has significantly decreased unmoving inventory to PHP 79,000 from PHP 3,000,000.
Cawagas and Villanueva plan to expand the system to cover a wider range of the Aboitiz Power subsidiary’s supplies. The outstanding management of Subic EnerZone’s materials demonstrates the Aboitiz BetterWorld mindset of providing a sustainable commercial experience for customers.